WHAT IS AN AIRCRAFT LEASING COMPANY?

What is an Aircraft Leasing Company? What does it do? Why do airlines lease planes? In today's video I'll be analysing all these points and providing you with these answers.
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Outro Song: Krys Talk - Fly Away
Remembering 99carnot
"Soaring to New Heights" - © Dj's Aviation 2018

[@DjsAviation]

We are on the final stretch to 50K!! Thank you all so much for the continued support :) I think you’ll like the subscriber special.

[@realb747fan]

Dj's Aviation I am waiting for 1 Million subs

[@nntflow7058]

Wet lease all the way! it slides in more smoothly.

[@RyanM129]

49,226... nearly there, can't wait

[@b747ultimate]

Dj's Aviation Its so deserved! Well done!

[@parimal7528]

Need some special video to celebrate 50k Dj. Maybe something unique like video on private jets especially ACJ, BBJ

[@julz9261]

Dj's aviation this is why I love your vids, your always teaching me new stuff well done man. So close to 50k, well done you deserve it.

[@GlizzySoundWave]

I watch djs vids everyday they are best videos on youtube ive learned a lot of things here dj deserves more than 1mil subs

[@aryanahmed3301]

Finally a video I had been wanting for such a long time! Thanks, DJ!

[@Hao_1]

Hello mate :-) and so happy to see your channel come this far. Hard work pays off and see you at 50k 👍👊

[@kennyA33]

Thanks for another very informative video dj! Keep up the great work.

[@tonyt73]

Outstanding insights DJ! 👍🏽

[@erraticjeff9954]

Wow that’s great news! I see them every now and than! Nice video!

[@jacksonB24]

The videos in the background🛫 are amazing!🖒👌 Dj almost 50k you are killing it mate!😁✌

[@FlyingAsia]

Detailed explanation of leases mate, great video!

[@DjsAviation]

Thanks dude!

[@ARK01__]

Yesssss!!!! Thanks DJ for making this video. Looked forward to it.

[@DjsAviation]

Pleasure mate, thanks for watching!

[@ARK01__]

Dj's Aviation no prob. Happy to be here.

[@robbonner]

great video dj!

[@AK-rq1cz]

Best explanation of this I have ever heard.

[@prismen5535]

great video !! 🔥

[@aryannarula2728]

Hello Dj's Aviation!! I am so glad you made this video! I just couldn't understand how such a company works but thanks to you I know now :) Keep Up The Good Work!! I too am an aviation enthusiast and I am sort of working on a similar aviation KZbin channel just like yours but one of the few from India!

[@DjsAviation]

Thank you so much for that :) Hello!

[@MarkAClarke]

Awesome DJ you rock !!!

[@AdAndPlanes]

49.2K!!!! Yes, an excellent idea and certainly something people can learn more about. Very nice to learn for your channel! Great explanation.

[@DjsAviation]

Thanks mate :) I appreciate your support! Congrats on 700!

[@Tech316Ent]

Wow! Awesome content in this channel.

[@octopusman398]

Yees another vid been binge watching your other vids today

[@DjsAviation]

Hahha thank you my friend :)

[@brandonfu9308]

Thanks, you answered lot of questions that I had!!😆😆😆

[@AirCatAviation]

Awesome, thumbs up! :)

[@Fakefake880]

Good primer. thank you

[@itstotti314]

Dj I am 100% sure you will reach 50,000 subscribers in no time

[@philipguacci6452]

Very good. Complex issue.

[@DjsAviation]

Thanks mate, without a doubt!

[@twobins2060]

I learned something today!

[@DjsAviation]

Awesome!!

[@hamoodtatari]

Two Bins same thing!

[@sumedhdolke1497]

Hey Dj, love your content, could you make a videos regarding different types of engines in aircraft

[@ipthomas6173]

What do you think about the next generation cargo plane? look forward to your next video!

[@victorblaise7030]

Hi DJ! Loved the video as alway ☺️ but, how do these companys make money? And are there lists out there to see which companys lease aircrafts?

[@chrisdog491]

Interesting!

[@daniloarvien2569]

Nice vid Dj

[@DjsAviation]

Thanks mate :)

[@hadeaep]

Awesome

[@banji5362]

Great video. Please can you break down why an air carrier would sell to a leasing company, then lease that same aircraft?

[@khalidabdulghani]

I've flown on a leased aircraft by StarLynx with Monarch a few weeks before they ceased operations.

[@Unrecxg]

Is there a stream tonight?!?!

[@gobbel2000]

How does the livery of a leased plane work? Does the airline paint each plane they lease? Or is that the reason why there are some completely white painted aircraft for example by easyjet.

[@therabbit3307]

Could you make a video about the inaugural flight of AirBelgium next week?

[@BlindAndFrench]

You mentioned Charter Flights. It’d be good if you could go over that too in this amount of detail

[@myteam94]

can you an explanation/comparison between jet-bridges/remote island/staircase near jet bridges? how much it cost/saving for an airlines if they opt either one and why airlines tends choose either one.

[@giancarloong1215]

Hi Dj, I have always wondered, how much income does a full 787 aircraft with a 2 class configuration makes?

[@mickytom79]

Are the commercial viability metrics the same for light aircraft ?

[@kenlesurvivant6403]

Good morning I want to know how long does it take to lease an airplane thanks for your reply ❤

[@tradjazzer]

cheers f.or this video; very interesting

[@kasali2528]

Hi, please make video on international route licences.

[@jtkm]

“And they will always pay on time” well, my dad wished his tenants would do the same! 😂

[@pastorlarrypotts8289]

With a leased plane, do they get painted to that airline’s colors. Thanks for the good video!

[@tbecker8518]

DJ, i'm still confused to a degree. how do the airline leasing corps make their money on this model? i'm familiar with the IHFC owned by the edvar-hazy family because they bequethed huge money for the IAD museum. thanks in advance.

[@faizanjoyia]

You are wrong about where the tenant pays for the maintenance for the house the owner pay for the maintenance of the house not the tenant

[@woodduck2178]

It depends on the agreement

[@edd1e814]

I have a question. I want to know how far can smaller link planes (sometime international) how far they can travel like do they have to be built in the country they will be flying from because they can’t travel long distances? It’s kind of hard to explain this but I have done my best. Just curious.

[@MiranDabare]

Do a video on aircraft insurance companies.

[@lukekedge9252]

Do some leasing company’s lease small planes like cessnas and Learjets

[@lewisdsd]

When Boeing delivers a brand new plane to an airline with their livery and all the aircraft is already leased? Does that mean that a leasing company don’t own an actual physical plane but only the papers of it? Thank you!

[@oliverlewzey7651]

Jota Aviation. Based at London Southend Airport. They are basically the aircraft version of enterprise rent a car.

[@dylan522p]

"I'm not going to explain the economics" - DJ "here's a video on aircraft leasing economics" - also DJ

[@victorvanmeer1904]

What airport are these background shots taken?

[@IntellectualHazard]

I have flown on an Air Corendon leased by SpiceJet airlines in india. Nice video anyways

[@aproopjoshi]

Intellectual Hazard*/_\* isn't it leased TO Spicejet??

[@ericingtywatre]

aproopjoshi same difference 🤣

[@VictoriaSharong-nw5pd]

We want to lease the aircraft on wet hire for 6 months to 12 months so how much does t cost for the leasig of an aircraft

[@vasoga0919]

Wet lease and dry lease?? What's the differences?

[@andkan1163]

How do they operate for profit though? Like their business model.

[@mickser101]

Half of the world's leased aircraft companies are owned and managed from Ireland. China is trying to muscle in on it now but Ireland was once the major player. Read up on Tony Ryan (Ryanair founder) and GPA. Interesting.

[@entertainmentnews2831]

Can we see a return of the how to start an airline series?

[@mazmiah1372]

Biman Bangladesh man!! Make a video pleassseeeee

[@SebMasterMC]

How do these companies start out though?

[@ZC_Offcials]

Example, Pal leased their a340s from Gulf Air and Iberia.

[@jakebclaridge8311]

Why are so many Chinese Banks buying the Comac. Is it to lease them?

[@stefantrandafir1099]

279 subscribers and you'll get to 50K!

[@Juanceesaint]

Everytime i watch DJ Aviation vids is i either listen or just watch all the random planes flying and landing. Can we have some visual about the topic?

[@DjsAviation]

That’s the whole point :) a number of viewers listen on the way into work or listen in the background. Visuals appear on videos I can do visuals for. However, it takes a large amount of time to do it. Of which I don’t have right now. Just bear with me ;)

[@AndroidGamerHD17]

One question. Say an airline wet leases an A359 and has an accident, resulting in major damage. What would happen next. Would the carrier who was operating that plane have to pay the leasing company for the damages in full or what?

[@pratyushjha7498]

Does aircraft leasing means buying a second hand aircraft?

[@Unrecxg]

First

[@jonathanmckavanagh7621]

How do the leasing company make profit on these planes with such high discount on the original price.

[@RyanM129]

All the Aussies on this channel should start an airline, that starts off with syd-mel flights on a319/18

[@RyanM129]

+Ksmash Gamer We might not even need a loan, because we could each find investors for $1-5m each. Then, most subscribers could work for the airline... But we would need pilots

[@Boudicca-the-musical]

You didn't mention the lead time issue. Buying a new aircraft has a much longer lead time to delivery than leasing.

[@GeneralKenobi-mz9ig]

697 more subs to go!

[@TB-if7px]

Can you lease business jets? Or is it only for the big commercial airplanes?

[@Ravi-qk8qp]

You can but it need more capital

[@alienkishorekumar]

Is it possible to lease aircraft between two different countries or is it a bureaucratic mess to do that?

[@glockenspiel4402]

2:51 So leasing is basically a golden ticket for new airlines

[@chaytanya2293]

Where can I find alumini of people who have completed there masters in aviation finance?

[@paintkiller93]

My vid idea: talk about major world cities and their place in global aviation. I live in LA and would love to see how it fits in the aviation world

[@DjsAviation]

Fantastic suggestion :) I've got a few similar ones already written down. One day I'll get to them lol

[@tino3826]

That's a great idea! Also about the future of those hubs

[@m4nu507]

All i heard seem to be on the plus side and no downsides? There must be quite a few downsides or every airline in the world would just lease an aircraft

[@hoodinisharif1860]

If you rent you don’t pay for plumbing maintenance lol that’s the landlords job idk how it is in Australia

[@niallstevens1979]

Hoodini Sharif its the same in Australia, any maintenance issues are the responsibility of the Landlord and not the tenant.

[@thegoldenminion9816]

can an airline only be leasing planes?

[@khooshalseechurn4504]

What about the paint coating of airline company....If British Airways leases a plane for say 3 years, they need to paint their plane according to their brand...then after the 3 years,now, Air France is willing to take the plane...so do the leasing company remove the British Airways paint and implement the Air France coat?...that is a huge cost isn’t it!!!!

[@jakebclaridge8311]

How do they get small aircraft with little range (for example an ATR72 from France) to countries like New Zealand?

[@aptadpamu]

That would be a good topic.

[@RyanM129]

Same question that I have

[@DjsAviation]

A fantastic topic! One example I can give is the Jetstar A321s with Sharklets which came from Europe to Melbourne. They had a stopover in Asia. I would assume that the aircraft may experience a number of stopovers. Thanks for your suggestion!

[@RyanM129]

+Divine Aviation It doesn't have the range to fly that, even with refuelling stops.

[@aptadpamu]

Ryno Madzo When ferrying a plane longer distances than the range of the aircraft they will often add auxiliary fuel tanks to the plane and if necessary will gut the interior to lighten the load and of course, no pax. I know when Hawaiian was getting their B717s from Long Beach, CA, they pulled the seats and ship them separately as well as installed temporary fuel tanks.

[@klx-y]

I will create my own airline company

[@snowy7317]

Ha ha ha the first bit of footage is of the plane that I used for my flight sim from Vegas to London and then I managed to land with 40 secs of fuel

[@DjsAviation]

Awesome haha xD

[@Concentrix101]

what flight sim???

[@snowy7317]

I know now I’m doing another flight from la to Honolulu

[@Apocrypha_Darkbane]

I am wondering why there is no A318NEO being offered. I’m pretty sure that if airbus did that the. British Airways would upgrade their current fleet of A318s.

[@Ibirdball]

Was just watching the aircraft tbh xD.

[@joshsmall22]

Why do you mostly see Asian and European carriers lease aircraft and not much U.S. carriers?

[@chrissytheconqueror7049]

We don't we hear in your videos that new planes are not only bought by airlines but also leasing companies?

[@bobbrown8661]

I think Qantas has its own lease company?

[@jcwils2009]

Werd

[@collinsasifsk9692]

Kindly can you please list the name of leasing companies thanks

[@hiranepali]

Have you found the name of leasing company ?

[@QuarterBach]

So don't leasing companies just lose money when they buy brand new aircraft and rent them out at a lower price?

[@QuarterBach]

Amy Tomoe oh ok. I'm talking about the leasing company that buys the planes from boeing or airbus. Not the airline

[@fixpacifica]

At least in the United States, leasing costs are tax-deductible. So an airline can either buy an aircraft and get a small tax deduction every year as it depreciates, or it can lease an aircraft and deduct all of the leasing costs each year. Doing the latter allows the airline to keep more money. I don't know what the exact tax rate was for airlines in the US (it recently changed,) but it could have been around 30%. So by deducting the leasing costs, the airlines get to keep 30% of the costs. The same kinds of tax rules apply in many other countries. Leasing companies take advantage of the tax benefits of leasing by being able to charge more for an aircraft over the term of the lease agreement than it would cost the airline if the airline owned the aircraft. So the leasing company essentially gets to split the tax benefit with the airline leasing the aircraft. I'm guessing at the proportions here, but maybe a leasing company ends up getting 40% of the tax savings, and the airline ends up with the other 60% of the tax savings.

[@alexmnblyth]

What is the meaning of "wet leasing?"

[@alexmnblyth]

Sorry just watched the meaning😂😂

[@nigel8499]

What would be the monthly lease payment on a Dreamliner? On a 15 year contract.

[@RyanM129]

If for example a 788 was costing $250m (I'm not sure how much they actually cost) and the WET leasing company was leasing them at half price, which is $125m. There would maybe be a deposit of $25m, then over 15 years, they would pay $1.8m a year- I think. Hope I answered your question

[@nigel8499]

Ryno Madzo yes, thank you. So $150,000 a month

[@ILC-eo6vk]

If the leasing company pays $250 million for a plane, and then leases it for half price, how is the leasing company making money?

[@RyanM129]

John Mooradian There are more costs involved

[@caralhoguy]

Atlas Air, HiFly.

[@realb747fan]

Hey Edit:I am second and I tied with the third due to my slow internet connection

[@RanBelGaming27]

What does it DOOOOO😂😂😂😂

[@sinalou1706]

What does it DO?

[@xtrofilm]

How can the leasing company buy the planes cheaper than an airline.

[@nigel8499]

kevin byrne my guess would be 'Volume discount' but I don't know.

[@xtrofilm]

Thanks.

[@sequri]

The voodoo economics at play here can be computed by using a derivative of Euler’s famous and beautiful equation. You need a real number, an imaginary number, a transcendental number, nothing, something circular, something oscillating, something exponential and more than a hint of trigonometry. Oh, and a lot of voodoo, obviously... Here are the components: eeh (as in “eeh by gum, lad”), aye (“aye, you’re not wrong, mate”), pie (“pie in the sky”), the number one (“..too many”) and zero (“..clue”). So the equation, of course is: eeh ^ (aye * pie) + 1 = 0 🤪✌️